Booking Holdings Inc. Quarterly Report for Q1 Ended Mar 31, 2025

Summary

Booking Holdings Inc. reported its first-quarter 2025 financial results, showcasing robust revenue growth driven by a significant increase in merchant revenues, which continue to outpace agency revenues due to a strategic shift in booking models. Total revenues rose 7.9% year-over-year to $4.76 billion, with merchant revenues climbing 22.2% to $2.92 billion. This growth was supported by a 7.2% increase in total gross bookings, reaching $46.67 billion, largely fueled by a 21.0% surge in merchant gross bookings. The company experienced a 7.2% increase in global room nights, indicating sustained demand, particularly in Europe and Asia. Despite strong revenue performance, net income saw a substantial decrease to $333 million from $776 million in the prior year, primarily impacted by a significant increase in interest expense, largely due to debt discount amortization related to convertible senior notes and new debt issuance, as well as substantial foreign currency transaction losses.

Key Highlights

• 1Total revenues increased by 7.9% year-over-year to $4.76 billion, driven by a strong performance in merchant revenues.
• 2Merchant revenues saw a significant jump of 22.2% to $2.92 billion, reflecting the ongoing strategic shift towards a merchant booking model.
• 3Total gross bookings grew 7.2% to $46.67 billion, with merchant gross bookings increasing by 21.0%.
• 4Global room nights increased by 7.2%, indicating continued demand in key markets like Europe and Asia.
• 5Net income decreased significantly to $333 million from $776 million in the prior year, largely due to higher interest expenses and foreign currency transaction losses.
• 6The company authorized a new share repurchase program of up to $20 billion in the first quarter of 2025.
• 7Marketing expenses increased by 10.4% to $1.78 billion, reflecting investment in driving growth amidst a competitive landscape.

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